Question

Determine the price of a $1000 par bond that has a ten-year maturity and 10% coupon...

Determine the price of a $1000 par bond that has a ten-year maturity and 10% coupon while the market rate of interest is 6%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A $1000 par value bond with 3 years to maturity has a coupon rate of 6%...
A $1000 par value bond with 3 years to maturity has a coupon rate of 6% pa paid annually. compute the bond price if the interest rate (compounded semi annually) are 7%, 8% and 9% respectively for year 1, 2 and 3.
A bond has a par value of $1000, a time to maturity of 12 years and...
A bond has a par value of $1000, a time to maturity of 12 years and a coupon rate of 6% with interest paid annually. If the current market price is $925, what will be the approximate capital gain yield of this bond over the next year if its yield to maturity remains unchanged? Answer in percentages with two decimal places
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and...
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond B has 10 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond C has 10 years to maturity, 4% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Which comparison is TRUE? A. Bond A has higher price sensitivity than Bond B B. Bond C has higher price sensitivity than Bond A C. Bond...
yeild to maturity on a 10 year, 9% annual coupon, 1000 par value bond selling for...
yeild to maturity on a 10 year, 9% annual coupon, 1000 par value bond selling for 887. find yield to maturity if price were 1134.20
1)What is the price of a bond if the par value is $1000, the coupon rate...
1)What is the price of a bond if the par value is $1000, the coupon rate is 5%(paid semi-annually), has 20 years to maturity and the market rate (yield to maturity per annum) is 8%? A. $683.11 B. $703.11 C. $813.11 D. $923.11 E. 1063.11 2) What is the coupon rate of a bond with a par value of $1000, it is currently selling for $800, has 15 years to maturity and the market rate (yield to maturity) is 10%...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10 years to maturity. These bonds pay a coupon of $45 every six months. Current market conditions are such that the bond sells for $938. Calculate the yield to maturity on the issue. Duration A newly issued 5-year Altec Corp. bond has a price of $1,095.99, a par value of $1,000, and pays annual interest at a 12% coupon rate. Find the duration of the...
Price A $1000 par value bond will mature in 10 years. This bond pays a coupon...
Price A $1000 par value bond will mature in 10 years. This bond pays a coupon of $90 every year. If investors require an annual return of 6%, what is the current price of this bond? Assume annual payments. What is the price if the required rate of return is 8%? What is the price if the required rate of return is 10%? How is the bond price related to the interest rate?
Consider a coupon bond that has a $1000 par value and a coupon rate of 10%....
Consider a coupon bond that has a $1000 par value and a coupon rate of 10%. The bond is currently selling for $1044.89 and has two years to maturity. What is the bond’s yield to maturity?
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM)...
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM) is 8%. 10-year, $1000 par value, 8% quarterly coupon bond whose current nominal YTM is 7%. 30-year, $1000 par value, zero-coupon bond whose current nominal YTM is 9.5%. 13-year, $1000 par value, 8% monthly coupon bond whose current nominal YTM is 10%. 5-year, $500 par value, 8% semi-annual coupon bond whose current nominal YTM is 8.25%
Suppose that our one-year 10% coupon bond was originally issued as a 20-year-maturity bond 19 years...
Suppose that our one-year 10% coupon bond was originally issued as a 20-year-maturity bond 19 years ago. At that time, the yield curve as flat at 10% per year. Now the bond has one year remaining before it matures, and the interest rate on one-year bonds is 5% per year. Although the 10% coupon bond was issued at par ($1000), its market price will now be $1047.62. How does the market price come out to be $1047.62 ????
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT